The following news release is from South Orange Village Administration:
In response to questions raised by residents, South Orange Village has worked closely with New Jersey American Water (NJAW) to review current water billing practices and confirm alignment with the terms of the approved sales agreement.
The agreement includes a five-year rate stabilization period, with no rate increases in the first two years, followed by annual increases of 3% in years three through five.
NJAW has provided detailed documentation, which the Village has reviewed and confirmed, demonstrating that the current billing structure is financially equivalent to the methodology previously used when the Village owned and operated the water system.
The following updates reflect necessary conversions as part of the transition:
- Billing Frequency: Transition from quarterly billing to monthly billing.
- Measurement Units: Water usage and billing converted from hundred cubic feet (CCF) to hundred gallons (CGL).
- Usage Rate Conversion: The prior rate of $8.00 per CCF has been converted to $1.06952 per CGL. Since one cubic foot of water contains 7.48052 gallons, these rates are equivalent.
- Minimum Charge Conversion: The former $50 minimum quarterly charge has been converted to a 16 CGL monthly usage allowance/reduction. At $1.06952 per CGL, this represents a $17.11 monthly usage charge reduction, equating to $51.33 per quarter — more than offsetting the Village’s $50 minimum charge.
- Lead Service Line Replacement Charge: Addition of a charge approved by the New Jersey Board of Public Utilities to fund NJAW’s mandated lead service line replacement efforts.
“We take inquiries from residents very seriously, and I understand that these types of conversions can be confusing,” said Mayor Sheena Collum. “That’s why we have also worked to provide a visual rate comparison chart, and I encourage residents to review it and feel confident that the terms approved by voters are being upheld. To date, NJAW has been a strong partner throughout this transition.”
Residents with questions about their water bills are encouraged to contact NJAW directly at 1-800-272-1325, Monday through Friday, 7 a.m. to 7 p.m.
Customers may also reach NJAW’s local Customer Advocacy team at [email protected]
